Managing multiple properties at once requires organizational skills, marketing savvy, and tech-savviness. It also requires centralized systems to keep data organized and standard operating procedures to maintain consistency.
Moreover, local knowledge is essential to market vacant units and to moderate tenant disputes. A property management firm can take care of all this and more to ensure high occupancy rates and optimized operational efficiencies.
1. Budgeting
Whether your property is managed in-house or by a third party, preparing an annual budget forecast and regularly comparing actual income and expenses to projections will ensure profitability and reduce unforeseen major repairs. A budget also provides a baseline for reviewing your manager’s performance and making course corrections.
Operating expense forecasts should include both fixed expenses, such as property taxes and insurance premiums, and variable expenses, such as laundry revenue, advertising and marketing costs, and management fees. The budget should be adjusted for inflation based on historical data and market conditions.
In addition to predicting future expense trends, the budget should incorporate potential new revenue streams such as self-service printers for package delivery or a pool attendant. These types of innovations are not only cost-effective, but can help increase resident satisfaction and lead to higher tenant renewal rates in the future.
2. Maintenance
Property management can be especially beneficial for owners who don’t have the time or inclination to manage their multifamily dwellings. The responsibilities can include rent collection, finding tenants, implementing energy management technology, and budgeting.
A major consideration is to limit vacancies as they negatively impact revenues. Adding tenant perks and additional amenities can be an effective strategy to encourage current tenants to stay, as well as attract new tenants.
Another important aspect of maintenance is the upkeep and cleanliness of common areas such as stairways, hallways, and mail rooms. This can be achieved through regular cleaning and janitorial services, as well as by utilizing smart home technology for easier scheduling of maintenance requests.
3. Resident Relations
Cultivating a stellar resident experience can be one of the most valuable assets your multi family property management company has. Satisfied residents are your best brand ambassadors, helping you attract and retain new tenants while reducing marketing expenses.
Providing a sense of belonging in their living community is what drives residents to renew their leases year after year. This can be done through community events like an Oscar’s Viewing party, a candy apple bar, or pizza parties to make your residents feel valued.
Having a good understanding of Maslow’s Hierarchy of Needs will help you recognize what your residents are looking for in their apartments. Offering a variety of services to meet their needs will increase resident satisfaction and improve your property’s reputation. This can lead to operational efficiencies and ancillary revenue opportunities.
4. Marketing
Multifamily property management can be a demanding career, but the benefits make it worth it. Property managers must market vacancies, moderate disagreements between tenants, and manage maintenance and finances for multiple units.
A successful multifamily property manager also focuses on community identity, which can attract more renters by creating a distinct brand that appeals to specific demographics. This allows for a more tailored housing experience and boosts occupancy rates, proves tenant satisfaction, and drives higher asking prices when the time comes to sell.
Other marketing tools to consider are video content and email marketing campaigns. Both are a great way to reach a multifamily audience and provide valuable information, giveaways, and more. You can also highlight unique features like video intercoms, package lockers, dining amenities, and pet-friendly communities.
5. Financial Reporting
A multifamily property manager must be able to monitor and understand their investment performance. Performance reporting allows stakeholders to assess revenue potential, optimize leasing strategies, and evaluate expenses for data-driven decision-making.
Taking a big-picture approach, MDU property managers can utilize datasets from all of their different departments to see where the biggest revenue opportunities are. This allows them to realign their strategies and align departments (i.e., maintenance, leasing, and marketing) to work in unison.
Proactive MDU management reduces operational costs by limiting the need for large-scale repairs down the road, increasing tenant retention, and adding amenities that add value to tenants’ lives, such as smart home technology. In addition, MDU owners can reduce utility costs by investing in energy efficient appliances. These include refrigerators, stoves, dishwashers and laundry machines in both units and common areas.multi unit property management